Mineros Adds US$110 Million of Gold Bullion in Record First Half

• Revenue of US$558.8 million and net profit of US$132.8 million in the first half of 2026 were the strongest six-month results in the Company's history.
• Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) rose 70% to US$260.5 million.
• Purchases of gold bullion totaling US$110 million reduced net cash from operating activities to negative US$30.8 million, against an operating cash flow before those purchases of US$79.3 million.
• All-in sustaining costs (AISC) of US$2,348 per ounce came in below the guided range of US$2,370 to US$2,470 per ounce.
• Full-year production guidance was raised to 220,000 to 240,000 ounces of gold.

Mineros (TSX: MSA | BVC: MINEROS | OTCQX: MNSAF) reported record revenue and net profit for the first half of 2026 and allocated US$110 million to gold bullion in its treasury, resulting in net cash from operating activities of negative US$30.8 million. The Company, which operates the Nechí property in Colombia and the Hemco property in Nicaragua, ended the half with net cash of US$110.1 million and strengthened its working capital position after period-end through a gold-secured repurchase agreement and a bank loan.

Second Quarter & First Half Results

Revenue for the six months ended June 30, 2026, reached US$558.8 million, up 63% on the same period a year earlier. Gross profit rose 71% to US$238.3 million, and the gross profit margin widened from 41% to 43%. Net profit was US$132.8 million, or US$0.45 per share, up 63%, and adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) rose 70% to US$260.5 million. Each of those measures is the strongest first-half result in the Company's history.

In the second quarter, revenue was US$267.0 million, up 46%, and Adjusted EBITDA was US$107.9 million, up 31%. The average realized price was US$4,290 per ounce for gold in the quarter and US$4,530 per ounce for gold across the half, against US$3,313 and US$3,096 a year earlier.

Strategic Gold Purchases & Operating Cash Flow

Mineros spent US$87.0 million buying gold bullion in the second quarter and US$110 million in the first half, with no comparable purchases in either prior period. Net cash from operating activities fell 52% to US$28.9 million in the quarter and was negative US$30.8 million for the half, against a positive US$71.5 million a year earlier. The quarterly decrease is attributed to those purchases made as part of a strategy to maintain exposure to bullion under the investment policy. Operating cash flow before strategic gold purchases, a measure that strips them out, was US$115.8 million for the quarter and US$79.3 million for the half, up 94% and 11%. Net free cash flow was US$102.0 million for the quarter and US$53.0 million for the half.

Cash equivalents and gold-backed assets totaled US$228.8 million at June 30, 2026, comprising cash equivalents of US$41.1 million, precious metals inventory of US$124.6 million, and gold-backed receivables of US$63.0 million, with gold-backed assets equivalent to 42,221 ounces of gold. The board approved an updated Investment Management Policy on May 4, 2026. It broadens the admissible instruments to include exchange-traded funds, listed precious-metals producer equities, and precious-metals derivatives, and increases the allocation to physical gold bullion, which must be held with institutional custody firms. It also establishes an Investment Committee with daily Value-at-Risk limits, monthly stress testing, and counterparty concentration limits.

President and Chief Executive Officer of Mineros, Daniel Henao, explains what the policy is for:

“This is an updated treasury policy because we want to build more gold exposure for our investors. So, we're actually accumulating bullion to put in vaults in Switzerland and in the US.”

The precious metals inventory covers 29,309 ounces of gold and 112,297 ounces of silver.

Cost Performance Against Guidance

Cash cost per ounce of gold sold was US$2,104 for the first half, and all-in sustaining costs (AISC) were US$2,348, against US$1,554 and US$1,812 a year earlier. The cash cost figure tracked within the full-year guidance of US$2,070 to US$2,170 per ounce. AISC came in below the guided range of US$2,370 to US$2,470 per ounce, which the Company says positions it to beat its full-year cost targets.

Cost of sales rose 57% to US$320.5 million for the half. Ore purchases in Nicaragua and payments for mining services in Colombia added US$76.9 million, driven by higher gold prices and an additional 12,808 ounces purchased. Taxes and royalties added US$13.4 million, a write-down of precious metal inventory added US$11.8 million, and a 15% depreciation of the US dollar in Colombia added US$6.4 million.

Operations in Colombia & Nicaragua

Consolidated gold production rose 9% to 118,103 ounces in the first half, with Nicaragua up 17.9% at 75,535 ounces and Colombia down 3% at 42,568 ounces. In Nicaragua, the Bonanza Mining Partnership accounted for 62,949 ounces, up 23%, and the Hemco underground operation accounted for 12,586 ounces, down 4%. Management says the Company has the right to buy ore from the partnership at approximately 45% to 50% of the spot price.

Gold sold rose 9% to 117,489 ounces, and gold equivalent ounces sold rose 12% to 122,634. Silver sold rose 111% to 312,446 ounces. The increase follows the metallurgical optimization program at the Hemco processing plant, where sustained throughput reached 2,100 tonnes per day (tpd) by June 2026, a 20% increase on the 1,750 tpd baseline.

Balance Sheet, Financing & Capital Returns

Loans and borrowings stood at US$55.6 million as of June 30, 2026. Net cash, a measure that includes the Company's precious metals holdings, was US$110.1 million, up 31% on a year earlier. On July 21, 2026, Mineros Switzerland AG entered into a repurchase agreement for working capital purposes, receiving net cash proceeds of US$18.5 million against a gross loan amount of US$20.5 million, secured by 5,100 ounces of gold valued at a spot price of US$4,010 per ounce. The facility runs for 185 days, with a maturity date of January 22, 2027. On July 24, 2026, the Company took a US$7 million loan from a financial institution for the same purpose.

An extraordinary meeting of the General Shareholders' Assembly on July 14, 2026, approved an expansion of the share repurchase program to up to US$175 million, executable until March 27, 2029, on the Bolsa de Valores de Colombia (BVC) and the Toronto Stock Exchange (TSX). Repurchases under the program approved earlier in 2026 have reached 5,404,119 shares for US$24.5 million, with US$6.4 million purchased between July 1, 2026, and August 4, 2026.

The annual ordinary dividend is US$0.10 per common share, paid in 4 equal quarterly installments, for a total distribution of US$29,578,052, with US$14.7 million paid in the first half.

Guidance, Growth Projects & Resources

Mineros raised full-year 2026 consolidated gold production guidance to 220,000 to 240,000 ounces from 213,000 to 233,000 ounces, with a focus on quick-return ounces and capital directed toward brownfield projects that can be brought online rapidly. Hemco is targeted to contribute 137,000 to 147,000 ounces and Nechí 83,000 to 93,000 ounces, against capital investment of US$113.7 million, of which US$51.7 million is growth spending.

The Hemco plant expansion is on schedule and within budget to reach 2,500 tpd by December 2026. At the Porvenir project in Nicaragua, the Attorney General's Office provided environmental certification for the processing plant and tailings storage facility in April 2026, one of the final steps toward full permitting. Specific forest management and treated wastewater authorizations remain pending, with approvals targeted by the end of the year.

The Company acquired a gold exploration project in Tolima, Colombia, during the first half of 2026, which carries a historical mineral resource estimate reported by AngloGold Ashanti PLC in December 2024 of 23.35 million ounces of gold in indicated mineral resources and 4.98 million ounces in inferred mineral resources. Across the portfolio, and excluding the Tolima historical estimate, proven and probable gold reserves stood at about 2.1 million ounces as at December 31, 2025, with measured and indicated resources, exclusive of reserves, of about 3.7 million ounces and inferred resources of about 1.7 million ounces.

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